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They can't stake that ETH because their users may want to pull it out. Staking it means that you make it unavailable for use, and if you try to break the rules

They can't stake that ETH because their users may want to pull it out. Staking it means that you make it unavailable for use, and if you try to break the rules while staking you lose it. They could probably stake some of it though, as long as there's no bank run situation.

JoshTriplett 9y ago
> They could probably stake some of it though, as long as there's no bank run situation. If there was even a hint that Coinbase was pulling any "fractional reserve" stunts, they'd lose the massive amount of credibility they have over less reputable exchanges. Reputation is the primary advantage Coinbase has.
- polyomino 9y ago
  Coinbase does not have a good reputation. Have you been to /r/coinbase?
  - ithinkinstereo 9y ago
    It's relative; CB's reputation is sterling compared to the other exchanges.
  - JoshTriplett 9y ago
    The standard answer for where to refer people to so they can buy or sell some coins without even a hint of shadiness or fly-by-night is Coinbase. That doesn't mean that they're perfect, or that nothing ever goes wrong; it means that they're the highest-reputation exchange available, and that their primary selling point is that reputation. Also, people happy with something post about being happy far less often than people angry with something post about being angry, because the latter have a problem/grievance to solve.
  - jpatokal 9y ago
    We're using different definitions of "reputation" here. Coinbase has a good reputation in that, unlike Mt Gox, it appears to be run by adults and is highly unlikely to get massively pwned or do a runner with your money overnight. But it also has a bad reputation in that their support is abysmal and/or overloaded, and if you run into any sort of trouble with transactions, ID verification etc, it tends to take a very long time to sort out.
- cobookman 9y ago
  Coinbase had yet to process wire withdrawls from over 13 business days ago. What trust can you have in an exchange in which you cannot withdraw your money. Also I dare you to try and get a hold of support at Coinbase. Hint hint you can't.
  - mancerayder 9y ago
    It seems several of the exchanges suffer from this. Are you already fully verified? Have you already withdrawn or is that the first time? Also are you in the US? Fingers crossed, in my case I first verified everything, and both deposited and withdrew cash in the last couple of months. It wasn't quick, but it wasn't as long as 13 business days. More like 6-8.
    - cobookman 9y ago
      I am fully verified. Only Coinbase seems to have this issue. And at least the other exchanges have working support.
  - JoshTriplett 9y ago
    > What trust can you have in an exchange in which you cannot withdraw your money. Works fine here. As mentioned elsewhere in the thread, happy people don't typically post about everything working as expected.
    - cornyNetHandle 9y ago
      "The Day Today" covered this pretty well in their pool supervisor skit - Pool Supervisor: "This pool's been open nearly 40 years, and, in all that time I only slipped up once, to my mind. I was engaged in a particularly tricky word puzzle and 40 people had broken in and were in the pool, playing around, ducking, bombing and doing all manner of prohibited activities, and eventually someone was killed." Interviewer: "But given that your sole responsibility is to maintain the security of the pool, isn't that an indictment against yourself?" Pool Supervisor: "Well, I would say this - I've been working here for 18 years, and in 1975 no one died. In 1976, no one died. In 1977, no one died. In 1978, no one died. In 1979, no-one died. In 1980... someone died. In 1981, no one died. In 1982 there was the incident with the pigeon. In 1983, no one died. In 1984, no one died. In 1985, no one died. In 1986... I mean, I could go on." Interviewer: "No." Pool Supervisor: "Right."
- runeks 9y ago
  Only problem is: if Coinbase does this, they can offer a return on deposits — unlike exchanges who refrain from staking their users’ funds. Additionally, Coinbase would be able to sell its future profits (from staking) in the futures market, and use the proceeds to honor an unexpectedly high demand for withdrawal. But why would users want to withdraw? They’re making more money by having their funds deposited with Coinbase than if they stored it themselves.

JoshTriplett 9y ago

> They could probably stake some of it though, as long as there's no bank run situation. If there was even a hint that Coinbase was pulling any "fractional reserve" stunts, they'd lose the massive amount of credibility they have over less reputable exchanges. Reputation is the primary advantage Coinbase has.

polyomino 9y ago
Coinbase does not have a good reputation. Have you been to /r/coinbase?
- ithinkinstereo 9y ago
  It's relative; CB's reputation is sterling compared to the other exchanges.
- JoshTriplett 9y ago
  The standard answer for where to refer people to so they can buy or sell some coins without even a hint of shadiness or fly-by-night is Coinbase. That doesn't mean that they're perfect, or that nothing ever goes wrong; it means that they're the highest-reputation exchange available, and that their primary selling point is that reputation. Also, people happy with something post about being happy far less often than people angry with something post about being angry, because the latter have a problem/grievance to solve.
- jpatokal 9y ago
  We're using different definitions of "reputation" here. Coinbase has a good reputation in that, unlike Mt Gox, it appears to be run by adults and is highly unlikely to get massively pwned or do a runner with your money overnight. But it also has a bad reputation in that their support is abysmal and/or overloaded, and if you run into any sort of trouble with transactions, ID verification etc, it tends to take a very long time to sort out.
cobookman 9y ago
Coinbase had yet to process wire withdrawls from over 13 business days ago. What trust can you have in an exchange in which you cannot withdraw your money. Also I dare you to try and get a hold of support at Coinbase. Hint hint you can't.
- mancerayder 9y ago
  It seems several of the exchanges suffer from this. Are you already fully verified? Have you already withdrawn or is that the first time? Also are you in the US? Fingers crossed, in my case I first verified everything, and both deposited and withdrew cash in the last couple of months. It wasn't quick, but it wasn't as long as 13 business days. More like 6-8.
  - cobookman 9y ago
    I am fully verified. Only Coinbase seems to have this issue. And at least the other exchanges have working support.
- JoshTriplett 9y ago
  > What trust can you have in an exchange in which you cannot withdraw your money. Works fine here. As mentioned elsewhere in the thread, happy people don't typically post about everything working as expected.
  - cornyNetHandle 9y ago
    "The Day Today" covered this pretty well in their pool supervisor skit - Pool Supervisor: "This pool's been open nearly 40 years, and, in all that time I only slipped up once, to my mind. I was engaged in a particularly tricky word puzzle and 40 people had broken in and were in the pool, playing around, ducking, bombing and doing all manner of prohibited activities, and eventually someone was killed." Interviewer: "But given that your sole responsibility is to maintain the security of the pool, isn't that an indictment against yourself?" Pool Supervisor: "Well, I would say this - I've been working here for 18 years, and in 1975 no one died. In 1976, no one died. In 1977, no one died. In 1978, no one died. In 1979, no-one died. In 1980... someone died. In 1981, no one died. In 1982 there was the incident with the pigeon. In 1983, no one died. In 1984, no one died. In 1985, no one died. In 1986... I mean, I could go on." Interviewer: "No." Pool Supervisor: "Right."
runeks 9y ago
Only problem is: if Coinbase does this, they can offer a return on deposits — unlike exchanges who refrain from staking their users’ funds. Additionally, Coinbase would be able to sell its future profits (from staking) in the futures market, and use the proceeds to honor an unexpectedly high demand for withdrawal. But why would users want to withdraw? They’re making more money by having their funds deposited with Coinbase than if they stored it themselves.